Authorizes the Secretary of Education to award such grants to State educational agencies to make subgrants to local educational agencies to develop or expand gifted and talented education programs, and provide direct educational services and materials. Requires such grants to be made on a competitive basis if appropriations are within certain minimum and maximum amounts, and on a formula basis if appropriations exceed such specified maximum. Sets forth authorized State and local uses of grant funds and authorized activities. Prohibits use of such funds for purchase or upgrading of technological hardware. Directs the Secretary to ensure, where appropriate, that provision is made for the equitable participation of students and teachers in private nonprofit elementary schools and secondary schools, including the participation of teachers and other personnel in professional development programs serving such children.